Question: Legit fund request

This is my first year as Treasurer in the PTO. I have been doing bookkeeping for over 20 years. I have a teacher who will treat certain staff members to breakfast or lunch. He wants the PTO to write a check to the restaurant and he will in turn give us a check made out to our PTO. For some reason the board allows this. I feel it's wrong on several levels.

Asked by ssandydeans



Advice from PTO Today

Craig writes:
I agree that this is a questionable practice. It complicates your bookkeeping, puts the PTO at financial risk (in case you don't get reimbursed), and might even be illegal if the teacher is claiming a tax deduction for money "donated" to the PTO. There's also an issue of precedent -- you're essentially loaning money to this teacher. Unless the PTO has a compelling reason to support these luncheons, you should stop doing this. And even if there is a reason to continue, you need a more straightforward way to handle the money.

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